In November 2022, ACEN announced the divestment of its subsidiary South Luzon Thermal Energy Corporation (SLTEC). SLTEC is the operator of a 246-MW coal plant.
ACEN touted that it exited its coal subsidiary through the world’s first market-based Energy Transition Mechanism (ETM). It said that the ETM will enable the early retirement of the 246-MW SLTEC coal plant by 2040 and its transition to cleaner technology. According to ACEN, the coal plant’s operating life will be reduced by up to 25 years. The shortening of the operating life will help avoid up to 50 million metric tons of carbon emissions.
But before that in October 2022, ACEN disclosed that its Board of Directors has approved the Power Purchase and Supply Agreement with GNPower Dinginin Ltd. Co.
It said that “Please be advised that the Board of Directors of the Company approved today the execution of a Power Purchase and Supply Agreement (”PPSA”) between the Company and GNPower Dinginin Ltd. Co. (“GNPD”) for the supply of 43 MW of capacity. The PPSA is scheduled to commence on 26 October 2022.”
ACEN did not disclose that GNPD is a coal-fired power plant. But according to Aboitiz Power, GNPD is a 1,336 MW coal-fired power plant in Mariveles, Bataan.
GNPD is a joint venture among Aboitiz Power Corporation, Power Partners Ltd. Co., and AC Energy and Infrastructure Corporation (“ACEIC”). ACEIC, which has a 62.43% ownership in ACEN, has an effective 20% economic interest in GNPD.
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